America's Greatest 20th Century Presidents by Charles River Charles River Editors Page B
Authors: Charles River Charles River Editors
Ads: Link
retreat into advance.”
Bank Runs
Roosevelt's first 100 Days were unusually active. On his first full day as President, Roosevelt ordered a bank holiday to halt the further run on U.S. banks. He then quickly got to work sending a record number of ideas for bills to Congress, almost all of which were passed easily by the large Democrats majorities in both the House and Senate.
FDR subscribed to a Keynesian view of economics, an outlook that believed the Depression grew worse due to a lack of spending and investment. He thus hoped to stimulate the economy by restoring confidence and offering incentives for people to spend and invest.
On March 9 th , just four days after Roosevelt declared a bank holiday, Congress passed the Emergency Banking Act, which required all banks to prove they were solvent before they were able to reopen after the bank holiday. FDR hoped this would allow Americans to be confident that their local bank would not lose their money.
Days later, on March 12 th , Roosevelt gave the first of many “Fireside Chats” over radio. The addresses reassured Americans and added to Roosevelt's already-stellar popularity, and they represented a revolutionary way of using new social media by a president.
FDR after one of the “fireside chats”
The First New Deal
From 1933 through 1934, Congress passed the legislation that came to be known as the “First New Deal.” New Deal legislation began passing through Congress at the end of March, less than a month into Roosevelt's first term. The first major achievement was the Civilian Conservation Corps (CCC), which put young men between the ages of 18 to 25 to work on a national reforestation program. In mid-April, Roosevelt made an historic move by taking the dollar off the gold standard, thereby giving the Federal Reserve stronger control over the nation's currency.
In May, the Federal Emergency Relief Act was passed, which gave grants rather than loans to states, which allowed them to spend money stimulating their economies. A more controversial act, the Agricultural Adjustment Administration (AAA) passed Congress that same month. The Act paid farmers to NOT till their land, hoping to reduce crop supply, increase prices, and thereby aid ailing farmers in the Heartland.
These initial bills were largely Depression-specific and provided immediate emergency relief. Other bills, however, had a more lasting effect on the economic fabric of the United States. In late May, Congress passed the Federal Securities Act, which required the issuing of stocks and bonds to be registered and approved by the Federal government.
June also brought a flurry of legislative activity. Congress passed the National Industrial Recovery Act (NIRA), the Public Works Administration (PWA), the Farm Credit Act, and the Federal Bank Deposit Insurance Corporation (FDIC), which guaranteed all deposits into insured banks up to a maximum of $2,500. The limit has been increased steadily in each economic crisis since FDR, and was raised to a limit of $250,000 in 2008. Among these pieces of legislation, NIRA was the most controversial. It forced industries to create minimum prices and establish rules of operation within their industry. It also mandated that industries make agreements not to compete. This bill was challenged on legal grounds and would later be found unconstitutional.
Towards the end of 1933, Congress created more Federal jobs programs and ratified the 21 st Amendment, ending Prohibition. This was a move heavily favored by Roosevelt's former opponents, the Irish Catholics from the Northeast.
Congress was not finished with the first New Deal in 1933, however. In 1934, it passed the Securities Exchange Act, which established the Securities Exchange Commission (SEC), to clamp down on illegal stock speculation. John F. Kennedy's father, Joseph Kennedy, chaired the Commission. In the
Bank Runs
Roosevelt's first 100 Days were unusually active. On his first full day as President, Roosevelt ordered a bank holiday to halt the further run on U.S. banks. He then quickly got to work sending a record number of ideas for bills to Congress, almost all of which were passed easily by the large Democrats majorities in both the House and Senate.
FDR subscribed to a Keynesian view of economics, an outlook that believed the Depression grew worse due to a lack of spending and investment. He thus hoped to stimulate the economy by restoring confidence and offering incentives for people to spend and invest.
On March 9 th , just four days after Roosevelt declared a bank holiday, Congress passed the Emergency Banking Act, which required all banks to prove they were solvent before they were able to reopen after the bank holiday. FDR hoped this would allow Americans to be confident that their local bank would not lose their money.
Days later, on March 12 th , Roosevelt gave the first of many “Fireside Chats” over radio. The addresses reassured Americans and added to Roosevelt's already-stellar popularity, and they represented a revolutionary way of using new social media by a president.
FDR after one of the “fireside chats”
The First New Deal
From 1933 through 1934, Congress passed the legislation that came to be known as the “First New Deal.” New Deal legislation began passing through Congress at the end of March, less than a month into Roosevelt's first term. The first major achievement was the Civilian Conservation Corps (CCC), which put young men between the ages of 18 to 25 to work on a national reforestation program. In mid-April, Roosevelt made an historic move by taking the dollar off the gold standard, thereby giving the Federal Reserve stronger control over the nation's currency.
In May, the Federal Emergency Relief Act was passed, which gave grants rather than loans to states, which allowed them to spend money stimulating their economies. A more controversial act, the Agricultural Adjustment Administration (AAA) passed Congress that same month. The Act paid farmers to NOT till their land, hoping to reduce crop supply, increase prices, and thereby aid ailing farmers in the Heartland.
These initial bills were largely Depression-specific and provided immediate emergency relief. Other bills, however, had a more lasting effect on the economic fabric of the United States. In late May, Congress passed the Federal Securities Act, which required the issuing of stocks and bonds to be registered and approved by the Federal government.
June also brought a flurry of legislative activity. Congress passed the National Industrial Recovery Act (NIRA), the Public Works Administration (PWA), the Farm Credit Act, and the Federal Bank Deposit Insurance Corporation (FDIC), which guaranteed all deposits into insured banks up to a maximum of $2,500. The limit has been increased steadily in each economic crisis since FDR, and was raised to a limit of $250,000 in 2008. Among these pieces of legislation, NIRA was the most controversial. It forced industries to create minimum prices and establish rules of operation within their industry. It also mandated that industries make agreements not to compete. This bill was challenged on legal grounds and would later be found unconstitutional.
Towards the end of 1933, Congress created more Federal jobs programs and ratified the 21 st Amendment, ending Prohibition. This was a move heavily favored by Roosevelt's former opponents, the Irish Catholics from the Northeast.
Congress was not finished with the first New Deal in 1933, however. In 1934, it passed the Securities Exchange Act, which established the Securities Exchange Commission (SEC), to clamp down on illegal stock speculation. John F. Kennedy's father, Joseph Kennedy, chaired the Commission. In the
Similar Books
